But the American people have -- they've reelected -- of Obama. And live again reelected their Republican majority in the house for prisons. If there's a mandate yesterday's results it's a mandate. A for -- to find a way to work together on solutions. To the challenges that we all face as a nation. My message today it's not one of confrontation. But one of conviction. In the weeks and months ahead we face a series of tremendous challenges. And great option. Just weeks away from now looms so called fiscal. Combination of automatic spending cuts and tax increases mandated by -- -- Within months of the fiscal cliff congress will be -- -- nations' -- it. Around the same time legislation will be needed to keep the government running. As a continuing resolution under which we're currently operating expires. Amid all of the short term hurdles we face the greatest challenge -- -- A massive debt that is smothering growth and exceeding the entire size of -- -- Several mid -- -- say that with the election over which should we should confront. The first of these challenges by simply lead in the top two tax rates expire. And push in the -- -- some other date. They that was engaged in the same short term temporary policies that have helped put us into the suspect's. In essence they're saying let's have more the same. Let's agree to drive our economy off part of the fiscal cliff instead of driving off the whole fiscal cliff animal called a day. Might -- us -- -- but it won't give us the problem. In noble also hurt our count. But we can't -- keep going on -- can't keep setting the bar that blow. It's time that we raise the war in -- the American people. This week didn't give us a mandate to simply do of the simple thing. They elected us to leave. They give us a mandate to work together to do the best -- country. And we know what the -- do would be. That would be an agreement with sends the signal to -- economy. And to the world that after years of punting on major fiscal challenges that we face. When he thirteen is going to be -- It would. Be in agreement the begins to pave the way for long term growth is essential. If we -- lift the -- of -- this pain over country. But also all of vote the problem of our fiscal imbalance overnight. And certainly won't do -- a lame duck session of -- Animal be solved simply by raising taxes are taking a plunge off the fiscal Clough. What we can't do -- over the cliff and -- manner. That serves as a down payment on and a catalyst for majors lotions enacted and -- -- thirteen. But to begin to solve the -- -- president the Republican majority -- Palestinians ready to work with you to do what's best for our country. That's exactly what I told the president -- earlier today. That was the will of the people and we will answer to them. And doing what's best means fully considering the impact of the policies. Of the -- -- that vote. You know the independent accounting firm Ernst and -- says -- and over part of the fiscal -- raising taxes on the top two rates. Would cost -- count me more than 700000. Jobs. Question wrong you know also confirms many of those -- the rate increase. Will be small business -- The very people who both parties are knowledge are the key the private sector job creation. There's an alternative to going over of the fiscal -- in whole or in part. And -- making real changes to the financial structure of entitlement programs and reforming our -- To curb special interest loopholes and deductions. By working together and creating a fairer simpler cleaner attacks do we give our country stronger healthier economy. A stronger economy means more revenue which is what the presidencies. Because the American people expect us to find common ground we're -- to accept some additional revenues via tax reform. There's a -- for tax reform that supports economic growth. After the 1986. With a Democrat house -- by Tip O'Neill. And a Republican president name Ronald right. In 1986. There -- were skeptics who doubt that the economic benefits of tax reform. Of those skeptics wrong. As Stanford economist and former Treasury Secretary George Schultz put. Of the 1986. Reform is the sort of unsung hero of the very good economic times we've -- for long. The time has come again to revamp the tax -- In -- we do he argues will get a gusher and there'll be a response and revenue will -- -- But the American people also expect us to solve the problem. And for that reason in order to garner Republican support for new revenues. The president must be willing to reduce spending on shore -- entitlement programs that -- the primary drivers of Georgia. If we're to -- -- seeking to what polls or will approach. Were asking him to make good on his balanced approach. The president's call for a balanced approach to the depths of the combination spending cuts increased revenues. But a balanced approach is a balanced of the means higher taxes on small businesses. That are the key to get our economy -- -- and keeping them move. A balanced approach is on balance that means that we increase the amount of money coming into the cooperative government. But we don't cut spending and address entitlements at the same time. A balanced approach is about -- -- in the old Washington way of raising taxes now and ultimately failing. To cut spending in the future. A balanced approach is some balance to it means -- -- national defense instead of making comments and spending cuts that are truly needed. Real economic growth eluded us in the first term of this -- In Nevada we cancel our debt grow. For the purposes of -- bipartisan agreement that begins to solve the problem we're willing to accept new revenue under the right conditions. What matters is where the interest revenue comes from what type of reform -- with. As the increase revenue comes from government take you know or future what the American people -- -- higher tax rates. Where does that come as a byproduct of growing our economy. Energized by simpler cleaner fairer taxes. With -- loopholes in lower rates for all. And it's and -- for reform attacks are we supporting growth by taking concrete steps. To -- our country's entitlement programs on a sounder financial -- Or. Are we just going to continue to -- the matter of entitlements. And thus the root of the entire problem. Shoring up entitlements reform of the tax -- -- -- special interest loopholes and deductions and moving to a fairer simpler system. Will bring jobs home. And -- -- stronger healthier economy. And history teaches. That this is the right path to -- tax reform done in a manner of which I've described. Will result in additional. That the president -- It -- support economic growth which means more revenue generated for the treasury. -- it will improve the efficiency of the tax system which means additional -- was well. Was number closer than many think -- -- critical mass that's needed legislatively to get tax reform bill. President -- talked about extensively. -- during the summer of one mile. Senator Patrick Meehan chairman -- central. With the support of other Republicans offered substantive proposals. In the -- called super committee last year. The provided -- the attack -- Now the American people recognize that -- our economy didn't -- -- is the only way will be able to balance the federal vote. The question we should be asking is not which taxes shouldn't -- deal more but. Which reforms can we agree on the we'll get our economy moving again. There to -- begin today. To get threatened the president seeks. -- feeding the growth of government through higher tax rates bowled out -- the problem. A -- unit growth of our economy -- better and cleaner tax code will. Now president has signaled a willingness to do tax reform the lower rates. Republicans. Signaled a willingness to accept new revenue if it comes from growth from reform. So let's start the discussion that. I'm not suggesting we compromise our principles. But I am suggesting that we commit ourselves to creating an atmosphere. Where we can seek common ground. Where it exists in season. -- we can't find them program means we'll continue to operate. On a tax -- on a year by year basis and means we'll continue to extend major programs for a -- at a time. It means will continuously for its expiration. Of the government's Borman -- -- will be a constant downgrade watch for -- In the new testament other Super Bowl full of -- One who built this house on sand. And the other who built his house on -- The foundation of our country's economy the rock. Our economy has always been small businesses in the -- -- -- ram while -- small businesses I can tell you raising the small business taxes means they don't grow. A small businesses don't grow our economy doesn't -- And of our economy. Doesn't grow we don't have a prayer object in our country -- -- will be -- our national debt. This was wide -- over part of the fiscal cliff and raising taxes on job creators is really no solution at all. Instead of building in our house on -- Was -- Little -- Stead of regime small business taxes -- start by fixing problems let's start by giving them some confidence and certainty about what the future holds. -- this to work we need to plan for a serious process. Focused on substance not on theatrics. It will require weeks of work rather than a weekend -- -- It won't happen around a campfire at Camp David room secret room with some air force base. -- as much as I'd like -- -- at all. This -- gonna take time but for all striving for -- solution. I'm confident -- -- -- This president this is your moment. We're ready to be let. Not as Democrats or Republicans. But as Americans. We want you to leave as a liberal or conservative. But -- president of the United States of America. We want music city. Let's challenge ourselves to -- in the common ground that is -- -- Let's rise above the dysfunction. And do the right thing together for our country. Thank you.

This transcript has been automatically generated and may not be 100% accurate.

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